Musk no longer world’s richest man after Tesla and Bitcoin slump

Musk no longer world’s richest man after Tesla and Bitcoin slump

Tesla stock began to slide in late January, accelerating after the BTC purchase announcement.

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Tesla CEO Elon Musk has lost his crown as the world’s richest man following a sharp correction in Bitcoin and a slump in his company’s stock that some analysts believe are correlated. 

Tesla stock (TSLA) has dropped 21% from its high of $890 on January 26, accelerating those losses over the past two days in a fall to $698. Shares of the electric vehicle maker dipped as much as 13% on Tuesday, Feb. 23, the stock’s worst day since early September.

Fox Business has blamed this week’s stock drop on the company’s association with Bitcoin, citing analyst Dan Ives of Wedbush, who also noted he believes the move was a strategic one for the long-term.

“Investors are starting to tie Bitcoin and Tesla at the hip. While Tesla on paper made roughly a $1 billion on Bitcoin in a month that exceeded all its EV profits from 2020, the recent 48 hour sell off in Bitcoin and added volatility has driven some investors to the exits on this name in the near-term,”

Tesla stock traded at around $865 on Feb. 8 when the announcement it had purchased $1.5B in Bitcoin was made. It bottomed out at $681 on Feb. 23 according to Yahoo Finance. However, reports of quality control issues in China may have also affected the price.

Tesla owns an estimated 48,000 BTC which means that paper profits were in the region of one billion dollars by the time the asset had hit its all-time high of a little over $58,000 on Feb. 21.

Despite this week’s price plunge, the firm is still in profit on the Bitcoin buy, as the asset was priced at a touch over $39,000 when the purchase announcement was made (and the buy happened prior to that).

The Telsa stock drop has knocked Musk off the top of Bloomberg’s Billionaires Index, with recent losses reported at $3.56 billion. Jeff Bezos tops the list again with an estimated total net worth of $187 billion while Musk has $180 billion according to Bloomberg.

At the time of writing Bitcoin prices had corrected by 17% to around $48,000 marking a $10K slide in just three days. In terms of pullbacks, markets are used to much larger ones such as the mid-January retreat which resulted in a 30% correction for BTC.


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Tesla stock began to slide in late January, accelerating after the BTC purchase announcement.

Altcoins and DeFi sell-off after Bitcoin’s 17.6% correction below $50K

Altcoins and DeFi sell-off after Bitcoin’s 17.6% correction below $50K

DeFi tokens and altcoins bore the brunt of today’s carnage as Bitcoin price dipped below $48,000.

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In the early morning trading hours Bitcoin (BTC) price abruptly dropped by 17.65% which triggered a major downturn throughout the entire market.

Data from Cointelegraph Markets and TradingView shows that Bitcoin decreased from a high of $58,274 on Feb. 21 to a low of $47,622 during the early hours on Monday before buyers returned to lift BTC to its current value of $53,350.

Daily cryptocurrency market performance. Source: Coin360

Despite today’s $1.6 billion liquidation event, Bitcoin bulls remain optimistic about the future of the top cryptocurrency with key indicators suggesting that those buying today’s dip are likely to come out on top.

According to ExoAlpha Chief Investment Officer David Lifchitz, recent charts for Bitcoin looked overbought, signaling that a „15% correction could happen” as part of a normal market cycle before BTC attempts to break out to new highs.

Bitcoin went from $10,000 in October 2020 to almost $60,000 in just 4 months, indicating to Lifchitz that a “pause/mild-correction is definitely in the cards.”

Lifchitz said:

$50,000 looks like the first stop for a mild pullback but a second leg down could take it down to $40,000 while the $30,000 zone looks like the ultimate bottom should things turn ugly in the short term.”

BTC/USDT 4-hour chart. Source: TradingView

Recent money printing by central banks makes it less likely that BTC will drop as low as $30,000, according to Lifchitz, as Bitcoin is increasingly being seen as a hedge against currency devaluation by investors around the world.

Lifchitz also pointed out the recent moves in traditional assets such as the U.S. 10 year treasury yield could “trigger a pullback in Bitcoin as a general deleveraging move across asset classes,” but only “time will tell” how it all plays out.

Rising yields put pressure on equities

Traditional markets were mixed on Feb. 22 as recent increases in Treasury yields led to expectations of higher inflation and put additional pressure on equities.

The Dow was able to overcome early pressure to close the day up 0.09% while the S&P 500 and NASDAQ traded in the red all day and closed down 0.77% and 2.46% respectively.

Commodities proved to be the bright spot in markets on Monday, with the price of crude oil increasing by 4.14% to trade at $61.69.  Gold price increased by 1.68% and close the day at $1,807.

Staking announcements and protocol upgrades send select tokens higher

Despite the market-wide downturn for the crypto community, several tokens saw their prices increase on Monday as positive developments helped elevate them above the negative sentiment.

The breakout star over the past 24-hours has been Crypto.com Coin (CRO), whose price exploded by more than 63% to establish a new all-time high of $0.2748 during early trading hours.

Other notable performances include NEM (XEM), which is up 16.05%, and Solana (SOL), which has increased by 20.54%.

BTC/USD daily chart. Source: Coin360

The overall cryptocurrency market cap now stands at $1.63 trillion and Bitcoin’s dominance rate is 61.2%.